Question

The following information pertains to JAE Corp. at January 1, Yeart Common stock, $12 par, 12,000 shares authorized, 2,480 shares issued and outstanding Paid-in capital in excess of par, common stock Retoined earnings $28,800 18,000 67,200 JAE Corp. completed the following transactions during Year 1: 1. Issued 700 shares of $12 par common stock for $28 per share. 2. Repurchased 240 shares of its own common stock for $25 per share. 3. Resold 50 shares of treasury stock for $26 per share. Required a. How many shares of common stock were outstanding at the end of the period? b. How many shares of common stock had been issued at the end of the period? c. Organize the transactions data in accounts under the accounting equation. d. Prepare the stockholders' equity section of the balance sheet reflecting these transactions. Complete this question by entering your answers in the tabs below. Req A and B Reg C ReqD How many shares of common stock were outstanding and issued at the end of the period? a. Outstanding shares at the end of the period b. Issued shares at the end of the period Perc < Prex 8 of 9 Next >

Answer 1

Solution Required a. & b. Calculation of number of shares of common stock issued and outstanding at the end of the period # of shares # of shares issued outstanding 2,400 2,400 700 No. of shares at the beginning of Year 1 Effect of transactions during the Year - Issued 700 shares of common stock - Repurchased 240 shares of its own common stock - Resold 50 shares of treasury stock No. of shares at the end of Year 1 700 (240) 50 2,910 0 3,100 a. Outstanding shares at the end of the period b. Issued shares at the end of the period 2,910 3,100

Required c. Event JAE CORPORATION Accounting Equation for the Year 1 Assets Stockholders' Equity Paid-in Paid in + Common Capital Liabilities Capital Treasury Cash + in Excess in Excess Stock Stock Common Treasury Stock Stock ($114,000) + $28,800 + $18,000 + $0+ $ 19,600 = 1 $0+ $8,400 + $11,200 + sol - $0+ ($6,000) = $0 + $0 + sol + $0 - $6,000 + $1,300] = $0 + sol + SO $50|-| ($1,250) + $14,900 = ($114,000)| + | $37,200 + $ 29,200| + | $50 - $4,750 + Retained Earnings Beg. Bal. $o $67,200 So End. Bal. | $67,200

Required d. JAE CORPORATION Balance Sheets (Partial) As of December 31 Stockholders' Equity Common stock Paid-in capital in excess of par, common stock Paid-in capital in excess of cost, treasury stock $37,200 $29,200 $50 Total paid-in capital Retained earnings Less: Treasury stock Total stockholders' equity $66,450 $67,200 ($4,750) $128,900